Ever since the evolution of mankind, diseases and medicines have become an indispensable part of our lives. Health problems are on the rise and with it, the pharmaceutical business. Pharmaceutical companies provide drugs or medicines that are required for medical treatments. Earlier in India, these medicines were provided by various multinational companies. However, this monopoly ended with the Indian pharmaceutical industry taking a revolutionary turn in the 1970s with the enactment of the Indian Patent Act that allowed local development of pharmaceutical industry.
At present, the Indian pharmaceutical business has become the third largest in the world in terms of volume and fourteenth in terms of value. It is estimated to touch US $20 billion and enter the list of the top 10 global pharmaceutical markets. The future of the Indian pharmaceutical business development seems favourable due to the increase in demand for generic APIs and India has emerged as a frontrunner in the production of these generic Active Pharmaceutical Ingredients (APIs). Competency in technology and skillful workforce has contributed to the success of pharmaceutical business development. Also, affordable rates have played a pivotal role in the pharmaceutical business development. As a result, the Indian pharmaceutical sector is thriving at about CAGR of 13.7%.
Also, many Indian companies have made their mark on a global level as they have tied up with several MNCs for research & development of diseases like cancer, AIDS and other third world diseases. What adds to the Indian pharmaceutical business development is the outsourcing received from MNCs who look for a reduction in their manufacturing costs. The only downfall here is that MNCs are promoting ‘authorised generics’, which entangle the native pharmaceutical companies in expensive litigations.
The pharma business development program, therefore, aims at increasing distribution and discovering new international markets. For this, the pharmaceutical industry will need to engage in increasingly aggressive marketing strategies. To develop the pharmaceutical business, investment in research and development (R&D) for new products is a necessity.
Some of the other factors that call for attention for pharma business development are the infrastructure facilities in India that continue to hamper growth by frequent power-cuts and poor transportation facilities. The Indian pharmaceutical industry will need to exploit the advances made in Bio-technology and Information Technology. Finally, the cost factor needs to be controlled without letting it interfere with the launch of new products.
The Indian pharmaceutical business growth rate showed a 25% increase in the last year alone. Therefore, the Government of India has reduced payments to the research association in the 2010 budget. The Indian pharmaceutical business is yet to reach its maximum potential. However, it does not seem too far with effective measures taken in marketing, research and development.